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Obligation with a Period
mainly discussed in Section 2 (1198-1193) of Chapter 4, Book IV of the Civil Code of the Philippines. An obligation with a period is a kind of obligation wherein its performance is subject to a term or period, and can only be demandable when that period expires. Such period is 'a day certain' which must necessarily come, although it may not be known when. Period vs Condition in terms of fulfillment: *a period is a future and certain event. *a condition is an uncertain event. in terms of time: *a period refers only to the future. *a condition may refer also to the past. in terms of influence on the obligation: *a period fixes the time for the performance of an obligation. It does prevent its existence (suspensive) and conception in due time (resolutory). *a condition causes the existence or the extinguishment of an obligation. Both a period and a condition are required to be legally and physically possible to be valid. Kinds of Period according to effect: *'Suspensive period (''ex die)' - wherein the obligation begins only from a day certain or upon the arrival of the period; as in: **D will pay C beginning tomorrow. **D will support C upon the death of his guardian. *'Resolutory period (in diem)' - wherein the obligation is performed only up to a day certain and terminated upon the arrival of the period; as in: **D will pay C every week until the end of the month. **D will support C until his death. according to source: *'Legal period''' - when it is provided by law. *'Conventional/Voluntary period' - whent it is agreed upon by the parties. *'Judicial period' - when it is fixed by the court. according to definiteness: *'Definite period' - when it is fixed and its exact date or time is known. *'Indefinite period' - when it is not fixed and its exact date or time is unknown, but surely happen. Computation of Period A period shall be based on time as defined by the law in terms of: * years - are of three hundred sixty-five (365) days each, whether it is a regular year or a leap year; or twelve (12) calendar months. * months - are of thirty (30) days; unless it refers to a specific calendar month in which case it shall be computed according to the number of days the specific month contains. * days - of twenty-four (24) hours. * nights - from sunset to sunrise. * calendar month - without regard to the number of days it may contain. In computing a period, the first day shall be excluded, and the last day included. It is also important to note that the phrases “within 10 years” (eg. Jan. 1, 2020 - Jan. 1, 2030) and “within the 10th year” (eg. Jan. 1, 2030 - Dec. 31, 2030) are different. Effect of Payment before the Period A thing or money given before the arrival of the period may be recovered by the debtor: * if he is unaware of such period. * if he mistakenly thought that such period has arrived. The debtor shall have the burden of proof of either such circumstances, otherwise he is presumed to be knowledgeable of the period. The creditor, for his part, has the obligation to return the thing or money received under such circumstances. This obligation arises from solutio indebiti that prevents unjust enrichment. The thing or money should be returned with its fruits and interests. But if the period has already arrived, only the fruits and insterests should be recovered The recovery of the thing or money is not applicable if the period depends on the sole-will of the debtor; he is deemed to have impliedly renounced the period. Examples * D is obliged to give C a book on June 30, 2020. D is unaware of the period and prematurely give it on May 30, 2020. In this case, D may recover the cellphone from C who has the duty to return it. * D is obliged to pay C Php10,000 on June 30, 2020. D paid the amount to C on June 20, 2020, mistakenly believing that it was already due. If before June 30, 2020, D may recover the Php10,000 plus interests. If after June 30, 2020, D may only recover the interests. Benefits of the Period A period fixed by the parties is presumed to have been established for the benefit of both the debtor and the creditor. This presumption is rebuttable. A period may be established in favor of one of the parties as shown in the tenor (actual wording) of the obligation or other circumstances. The period may either be: * for the benefit of the debtor; he cannot be compelled to perform the obligation before the arrival of the period and may perform the obligation in advance. * for the benefit of the creditor; he cannot be compelled to accept the performance before the arrival of the period and may demand the performance of the obligation in advance. A period may also be waived if the creditor accepts a partial payment or performance from the debtor without any explanation. Such partial performance is presumed to be intentional and voluntary on the part of the creditor. Examples * D is obliged to give C a book 'on or before' June 30, 2020. Here, the period is for the benefit of D (the debtor). * D is obliged to pay C Php10,000 'on exactly' June 30, 2020 with the stipulation that the payment may be demanded by C before the said date. Here, the period is for the benefit of C (the creditor). * D is obliged to pay C Php10,000 on exactly July 30, 2020. D paid Php5,000 (as partial) to C who unconditionally accepted it. Here, the period is presumed to be waived by C (the creditor). Power to Fix Period by the Court The court may fix a period: * when there is no fixed period, but it can be inferred that a period was intended by the parties from its nature and the circumstances. * when the duration of the period depends upon sole will of the debtor. In determining a period, the court aims: * to enforce the intention of the parties, not to modify the obligation. * to prevent the possibility of breach of obligation. A complaint for right of action (to fix a period) should be supported by: * facts showing or inferring that a period for the performance of obligation was intended by the parties. * facts showing that obligation is favorable to one party but forced upon unfavorably to the other. Such complaint must expressly ask for the court for a period, unless the facts are sufficient to show the need for such right of action. A period cannot be fixed by the court: * if such period is agreed upon by the parties and has already lapsed or expired. * if such period was already (previously) fixed by the court with the consent and acceptance by the parties. However, the parties may create a new period under a new agreement. Examples * D is obliged to deliver C a book, but there is no fixed period for the delivery. Their obligation has a stipulation of late delivery penalty. Here, the court can fix the period based on the fact that the obligation has a stipulation of late delivery penalty indicating the intention of the parties that the book be delivered at a definite time. * D is obliged to pay C a rent of Php10,000 every month for a lease beginning on July 1 of this year to continue as long as the rent is being paid. Here, the court can fix the period as the duration depends upon the will of D (the debtor), since he may extend the lease that should have been temporary. * D is obliged to pay C Php10,000 on July 30, 2020, which is the period agreed upon by both parties. After July 30, 2020, D filed for a right of action to fix the expired period. Here, the court shall deny D such action. * D is obliged to pay C Php10,000 on July 30, 2020, which is the period set by the court. D filed for a right of action to fix the period again. Here, the court shall deny D such action. Benefit of the Period lost by the Debtor The debtor shall lose every right to make use of the period: *when he becomes insolvent (assets